Mahanagar Gas Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 2,776.74 Cr (+23.12% YoY) and PAT growth of -29.14% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,776.74 Cr (+23.12% YoY) |
| PAT (Q2) | Rs. 137.03 Cr (-29.14% YoY) |
| EBITDA margin | 12.01% (-450 bps YoY) |
| EPS (Q2) | Rs. 13.87 (-29.14% YoY) |
Revenue grew 23.12% YoY on volume and realisation gains, but gas cost inflation (Rs.42.52/SCM vs Rs.33.04 H1 FY26) drove EBITDA margin down to 12.01% and PAT down 29.14% YoY. Management's Rs.8-9/SCM EBITDA target was missed (Rs.6.77/SCM) and the 8-9% volume growth guide is behind pace at 6.75% H1, while cash generation (CFO 2.10x PAT) and a debt-free balance sheet remain intact.
| Driver | What happened | Verdict |
|---|---|---|
| CNG volumes in-line/modestly ahead; 8–9% guide intact ("CNG +9.74% already sat above the guide") | H1 CNG +9.44% YoY; total +6.75% (Q2 YoY volumes not derivable from the filing) — H1 basis | Played out |
| I&C the soft spot; 12–14% scenario the stretch leg | H1 I&C −7.32% YoY | Played out |
| Margins compressing vs the Rs.8–9/SCM guide ("Rs.7.91 already missed… squeeze mechanism unchanged") | EBITDA/SCM Rs.6.77 in Q2, Rs.7.33 H1 | Played out |
| 1-Sep price hikes a partial, lagged offset | The filing does not quantify the hikes or their impact | Not observable in filing |
| Receivables outpacing revenue | Receivables +24.31% since March vs H1 revenue +18.84% — mild | Played out |
| Capex/dividend internally funded, borrowings nil | No borrowings; cash + investments Rs.1,134.07 Cr; H1 FCF +Rs.52.65 Cr | Played out |
| Watch: APM mix, curtailment recurrence, gas-mix bridge | Not addressed in the filing — remains open for the call | Not observable |
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| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 volume growth 8–9% ("double-digit aim") | Q1 FY27 earnings call | H1 total volumes +6.75% YoY; Q2 at 4.892 MMSCMD | Stretch |
| EBITDA Rs.8–9/SCM ("endeavor over longer period") | Q4 FY26 & Q1 FY27 earnings calls | Rs.6.77/SCM in Q2; Rs.7.33/SCM H1 (adj. H1 FY26 base Rs.8.77) | Missed |
| FY27 capex Rs.1,500–1,800 Cr (earlier ~Rs.1,200 Cr) | Q1 FY27 earnings call; Q3/Q4 FY26 calls | H1 cash capex Rs.642.83 Cr (42.9% of low end) | On Track |
| Dividend ~Rs.30/share maintained | Q1 FY27 earnings call | Rs.177.87 Cr paid in H1 (FY26 final, Rs.18/share); interim falls due from Q3 | Too Early |
| Margin recovery toward Rs.8–9/SCM over time | Q2 FY26 / Q4 FY26 calls ("endeavor") | EBITDA/SCM fell to Rs.6.77 from Rs.7.91 — moving away, not toward | Contradicted this quarter |
| Double-digit FY27 volume aim; I&C +12–14% scenario | Q1 FY27 / Q4 FY26 calls | H1 total +6.75%; I&C −7.32% H1 YoY | Contradicted on I&C; total-volume leg behind pace |
| Capex funded via internal accruals; ~Rs.30/share payout maintained | Q1 FY27 call | No borrowings on the balance sheet; H1 FCF +Rs.52.65 Cr | Confirmed |
| RI (right-of-way) costs down by more than half | Q4 FY26 call | Not evidenced in the filing | Too Early |
| Metric | H1 FY26 | Q1 FY27 | Q2 FY27 | H1 FY27 |
|---|---|---|---|---|
| Volumes (MMSCMD) | 4.524 | 4.766 | 4.892 | 4.829 |
| Net realisation (Rs./SCM) | 49.89 | 54.68 | 56.38 | 55.58 |
| EBITDA (Rs./SCM) | 10.13 (adj. 8.77) | 7.91 | 6.77 | 7.33 |
| EBITDA margin % | 20.30 (adj. 17.10) | 14.46 | 12.01 | 13.20 |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.